MUMBAI: Two global steel giants \u2014 ArcelorMittal and Nippon Steel \u2014 are teaming up to jointly bid
\nfor bankrupt Essar Steel BSE 0.41 %, said two senior executives who did not want to be named. The
\nasset is expected to go under the hammer in the second week of February.<\/p>\n
ArcelorMittal and Nippon Steel had originally planned to submit independent bids for Essar Steel,
\nwhich is among the five steel companies up for sale following RBI\u2019s directions to refer 12 companies
\nto bankruptcy court in June last year. The other key contenders for Essar Steel are Tata Steel BSE 0.54
\n%, Vedanta Resources and the promoters of Essar, the Ruias, in partnership with Russia\u2019s VTB
\nCapital.<\/p>\n
Japan\u2019s Nippon Steel and billionaire Lakshmi Mittal-promoted ArcelorMittal decided to bid jointly for
\nEssar last week, said the people cited above. \u201cThe final contours of the tie-up are being worked out.
\nWe don\u2019t really know the rationale for the tie-up as yet,\u201d said one of the persons.<\/p>\n
ArcelorMittal declined comment on what it said was speculation. Nippon Steel couldn\u2019t be reached
\nover the weekend and there was no response to an email.<\/p>\n
PARTNERSHIP TO INTENSIFY BIDDING This partnership will intensify bidding for Essar Steel and result in lower haircuts for lenders. Essar Of the five, the respective resolution professionals have accepted binding bids for Monnet Ispat and Tata Steel has sought fresh bids for Electrosteel Steels after a clarification was issued on tax liability The Ruias will make every effort to retain their prized asset and their bid may be the most aggressive MUMBAI: Two global steel giants \u2014 ArcelorMittal and Nippon Steel \u2014 are teaming up to jointly bid for bankrupt Essar Steel BSE 0.41 %, said two senior executives who did not want to be named. The asset is expected to go under the hammer in the second week of February. ArcelorMittal and Nippon Steel had … <\/p>\n
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\n\u201cNippon Steel has deep pockets but it does not have any presence in India and therefore partnering
\nwith those who are familiar with Indian regulations is comforting,\u201d said one of the persons. \u201cFor
\nArcelor-Mittal, partnership will add to the financial muscle needed for acquiring the company.\u201d<\/p>\n
\nSteel faces Rs 54,851 crore in claims from financial creditors and Rs 22,914 crore in claims from
\noperational creditors. The five steel companies among the 12 are Electrosteel Steels, Bhushan Steel,
\nMonnet Ispat and Bhushan Power & Steel besides Essar Steel.<\/p>\n
\nElectrosteel Steels, while the other three will be up for sale after the February 1 Budget. JSW Ispat in
\npartnership with AION was the sole bidder for Monnet Ispat. Vedanta Resources emerged the
\nhighest bidder for Electrosteel Steels.<\/p>\n
\nfor acquiring distressed companies a day after deadline. JSW Ispat has tied up with a Japanese fund
\nand Piramal to bid for Bhushan Steel and is expected to face stiff competition from Vedanta. \u201cThese
\ndevelopments show that bidding for steel companies, particularly Essar, will attract intense
\ncompetition and no one wants to take a chance in losing good assets at a discount,\u201d said one of those
\naware of the development .<\/p>\n
\namong all bidders, said people with knowledge of discussions.<\/p>\n","protected":false},"excerpt":{"rendered":"